Are NFTs making a comeback?

  • As interest in NFTs surged again, volumes for Blur and OpenSea rose.
  • Despite interest in Yuga Labs NFTs, APE’s price continued to decline.

After experiencing a decline in popularity during the latter part of 2023, the NFT sector has begun to witness a revival in terms of renewed interest in 2024.

A comeback in the works?

According to recent data, year-to-date, NFTs have outperformed other assets, boasting a remarkable 21% return. Concurrently, the volume of NFT transactions surged from 1.3 million to 3.2 million in 2024.

Considering these substantial gains and the growing transaction activity, strategically investing in blue-chip NFT collections may prove to be a prudent decision.

Due to this surge in interest in NFTs, the overall volume on exchanges also witnessed a growth. Blur and OpenSea were the most dominant out of all the NFT exchanges and had led the sector.

Source: Dune Analytics

Crypto Punks, a Yuga Labs-owned NFT collection, was one of the few NFT collections that garnered the most interest during this period. The sales volume of the NFT collection surged by 150% over the last week.

The average duration of holding these collections was 193 days, according to Crypto Slam’s data.

Screenshot 2024 01 25 at 2.29.59 PM

Source: Crypto Slam

However, other Yuga Labs collections failed to attract the same level of attention.

For instance, BAYC (Bored Ape Yacht Club), one of Yuga Labs’ most popular collections, witnessed a massive decline in terms of floor price and volume.

Screenshot 2024 01 25 at 2.32.58 PM

Source: NFT Stats

State of APE

These factors may influence how Yuga Lab’s token, ApeCoin[APE]‘s price movement will do in the future as well.

Over the last 12 months, the price of APE has been in a free fall as it declined from $6.29 to $1.317 at the time of writing.

Although APE may experience a brief boost in relief and price due to the popularity of the Yuga Labs collection, a full recovery is expected to depend on more significant developments.

The network growth of APE suggested that there were no new addresses interested in the APE token at the time of writing.

Realistic or not, here’s APE’s market cap in BTC’s terms

Moreover, the declining velocity of APE implied that the frequency at which was being sent and received had also fallen.

Considering these factors, APE’s future appears grim, with limited prospects for recovery in the foreseeable future.

ApeCoin APE 14.47.06 25 Jan 2024

Source: Santiment

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